Russia conquered Uzbekistan in the late 19th century. Stiff resistance to the Red Army after World War I was eventually suppressed and a socialist republic set up in 1924. During the Soviet era, intensive production of "white gold" (cotton) and grain led to overuse of agrochemicals and the depletion of water supplies, which have left the land poisoned and the Aral Sea and certain rivers half dry. Independent since 1991, the country seeks to gradually lessen its dependence on agriculture while developing its mineral and petroleum reserves. Current concerns include terrorism by Islamic militants, economic stagnation, and the curtailment of human rights and democratization.

shrinkage of the Aral Sea is resulting in growing concentrations of chemical pesticides and natural salts; these substances are then blown from the increasingly exposed lake bed and contribute to desertification; water pollution from industrial wastes and the heavy use of fertilizers and pesticides is the cause of many human health disorders; increasing soil salination; soil contamination from buried nuclear processing and agricultural chemicals, including DDT

chief of state: President Islom KARIMOV (since 24 March 1990, when he was elected president by the then Supreme Soviet) head of government: Prime Minister Shavkat MIRZIYOYEV (since 11 December 2003); First Deputy Prime Minister Rustam AZIMOV (since 2 January 2008) cabinet: Cabinet of Ministers appointed by the president with approval of the Supreme Assembly elections: president elected by popular vote for a seven-year term (eligible for a second term; previously was a five-year term, extended by constitutional amendment in 2002); election last held 23 December 2007 (next to be held in 2014); prime minister, ministers, and deputy ministers appointed by the president election results: Islom KARIMOV reelected president; percent of vote - Islom KARIMOV 88.1%, Aslidden RUSTAMOV 3.2%, Dilorom TASHMUKHAMEDOVA 2.9%, Akmal SAIDOV 2.6%

bicameral Supreme Assembly or Oliy Majlis consists of an upper house or Senate (100 seats; 84 members are elected by regional governing councils and 16 appointed by the president; to serve five-year terms) and a lower house or Legislative Chamber (120 seats; members elected by popular vote to serve five-year terms) elections: last held 26 December 2004 and 9 January 2005 (next to be held December 2009) election results: Senate - percent of vote by party - NA; seats by party - NA; Legislative Chamber - percent of vote by party - NA; seats by party - LDPU 41, NDP 32, Fidokorlar 17, MTP 11, Adolat 9, unaffiliated 10 note: all parties in the Supreme Assembly support President KARIMOV

Uzbekistan is a dry, landlocked country of which 11% consists of intensely cultivated, irrigated river valleys. More than 60% of its population lives in densely populated rural communities. Uzbekistan is now the world's second-largest cotton exporter and fifth largest producer; it relies heavily on cotton production as the major source of export earnings. Other major export earners include gold, natural gas, and oil. Following independence in September 1991, the government sought to prop up its Soviet-style command economy with subsidies and tight controls on production and prices. While aware of the need to improve the investment climate, the government still sponsors measures that often increase, not decrease, its control over business decisions. A sharp increase in the inequality of income distribution has hurt the lower ranks of society since independence. In 2003, the government accepted Article VIII obligations under the IMF, providing for full currency convertibility. However, strict currency controls and tightening of borders have lessened the effects of convertibility and have also led to some shortages that have further stifled economic activity. The Central Bank often delays or restricts convertibility, especially for consumer goods. Potential investment by Russia and China in Uzbekistan's gas and oil industry may boost growth prospects. In November 2005, Russian President Vladimir PUTIN and Uzbekistan President KARIMOV signed an "alliance," which included provisions for economic and business cooperation. Russian businesses have shown increased interest in Uzbekistan, especially in mining, telecom, and oil and gas. In 2006, Uzbekistan took steps to rejoin the Collective Security Treaty Organization (CSTO) and the Eurasian Economic Community (EurASEC), both organizations dominated by Russia. Uzbek authorities have accused US and other foreign companies operating in Uzbekistan of violating Uzbek tax laws and have frozen their assets. US firms have not made major investments in Uzbekistan in the last six years.

general assessment: antiquated and inadequate; in serious need of modernization domestic: the main line telecommunications system is dilapidated and telephone density is low; the state-owned telecom company, Uzbektelecom, is using a US$110 million loan from the Japanese government to improve main line services; mobile services are growing swiftly, with the subscriber base more than doubling in 2007 to 5.8 million international: country code - 998; linked by landline or microwave radio relay with CIS member states and to other countries by leased connection via the Moscow international gateway switch; after the completion of the Uzbek link to the Trans-Asia-Europe (TAE) fiber-optic cable, Uzbekistan will be independent of Russian facilities for international communications (2006)

prolonged drought and cotton monoculture in Uzbekistan and Turkmenistan creates water-sharing difficulties for Amu Darya river states; field demarcation of the boundaries with Kazakhstan commenced in 2004; border delimitation of 130 km of border with Kyrgyzstan is hampered by serious disputes around enclaves and other areas

current situation: Uzbekistan is a source and, to a lesser extent, a transit country for women trafficked to Asia and the Middle East for the purpose of sexual exploitation; women from other Central Asian countries and China are trafficked through Uzbekistan; men are trafficked for purposes of forced labor in the construction and agricultural industries to Ukraine, Russia, Kazakhstan, and Kyrgyzstan; men and women are also trafficked within the country tier rating: Tier 3 - Uzbekistan is placed on Tier 3 because it failed to fulfill commitments by the country to take additional steps during 2005, including the adoption of comprehensive anti-trafficking legislation, criminal code amendments to raise trafficking penalties, support to the country's first trafficking shelter, and approval of a national action plan

transit country for Afghan narcotics bound for Russian and, to a lesser extent, Western European markets; limited illicit cultivation of cannabis and small amounts of opium poppy for domestic consumption; poppy cultivation almost wiped out by government crop eradication program; transit point for heroin precursor chemicals bound for Afghanistan